JPMorgan lowered its performance expectations for Circle and Coinbase, citing that its new agreement with Hyperliquid has weakened USDC’s profit potential. Under the new agreement, Coinbase will pay Hyperliquid 90% of the revenue from USDC reserve funds held on Hyperliquid, rather than splitting it 50-50 with Circle as before. JPMorgan said this creates a “prisoner’s dilemma,” driving both sides to compete with each other when promoting USDC distribution. Data shows Hyperliquid currently holds about $6B worth of USDC, accounting for 8% of its circulating supply. (CoinDesk)

JPM2.55%
CRCL0.25%
COIN2.62%
HYPE6.33%
USDC-0.03%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • 1
  • Share
Comment
Add a comment
Add a comment
GateUser-83c80dd0
· 7h ago
The Prisoner’s Dilemma is pretty spot-on—both sides are now competing with each other for USDC distribution channels, but users can at least pick up a bit of extra value.
View OriginalReply0
OldBlackVelvetKey
· 12h ago
JPMorgan cuts its outlook, which is within expectations; reserve fund returns are the main part—now Circle can only get a share of the leftovers.
View OriginalReply0
AirdropTaxPanic
· 12h ago
Circle got backstabbed pretty badly this time—90% of the profits go straight to Hyperliquid, basically like working for free.
View OriginalReply0
ReorgPanicButton
· 12h ago
Coinbase is playing both sides: on one hand, it takes Hyperliquid’s traffic, and on the other, it suppresses Circle’s price—same old play.
View OriginalReply0
APuppyInTheWarmSun
· 12h ago
USDC’s moat is getting thinner: the old Circle–Coinbase alliance is now sabotaging each other, and DAI and USDT are absolutely getting a laugh out of it.
View OriginalReply0
Cross-SectionOfSucculent
· 12h ago
$6 billion USDC accounts for 8% of the circulating supply. At this scale, Hyperliquid truly deserves to renegotiate the revenue split.
View OriginalReply0
  • Pinned